NCDEX counters attrition with new hires

The National Commodity & Derivatives Exchange Ltd (NCDEX), the country's number two commodity futures exchange, has made a number of senior level appointments to counter the exodus of senior officials in recent months.

The exchange has appointed Nirmalendu Jajodia as chief of technology and operations and Raj Benahalkar as head of risk management.

Prior to taking up his new position at NCDEX, Jajodia was working with Datamatics Ltd as executive vice president, while Benahalkar was the head of market risk management at Yes Bank. The new appointments will strengthen the operations of the exchange.

Recently, many senior executives, who have been with the exchange since inception, had resigned which lead to the speculation that the exchange was facing a bleak future.

In a press release on Monday, announcing new appointments, NCDEX had clarified, "Resignations are part of the functioning of any developing organisation, particularly in a fast growing country like India. The staff attrition levels at the exchange are in line with what is happening today in the financial services industry in India. NCDEX has always ensured that its functioning is not affected in any way by resignations."

The exchange tried to allay fears by saying that "the shortage of such personnel is not only in India but overseas as well".

Narendra Gupta, Meher Baburaje, Mukand Annigeri and J Sampath had resigned, resulting in a exodus at the senior level in the exchange. Narendra Gupta, chief strategic officer, had left to start his own business.

"He had requested several times in the past. But this time he had strongly requested the management to relieve him," an exchange source said on the condition of anonymity.

The regulator, Forward Markets Commission, had in February 2006 ordered NCDEX to transfer him to non-core activities from the position of chief business officer following some decisions taken without the prior approval of the regulator.

However, whether Gupta's resignation was in this connection or due to other reasons could not be confirmed. Chief of spot exchange Mukand Annigeri has, however, quit from the active management of the exchange. But, according to highly placed sources, he will continue with the exchange probably as an advisor.

Chief compliance officer J Sampath, according to sources, has resigned on family problems. Other key officials, including Meher Baburaje, had already opted out of the exchange about two months ago. Meher Baburaje has joined Centrum. According to market sources, the ban on rice, wheat, urad and tur has hit the exchange hard, halving the turnover in the last one year.